"The market is focusing on the negatives, which include a more challenging environment in not only house building but now commercial office development and non-food retail," said Altium Securities analyst David O’Brien.

The stock was also weighed by concerns that Speedy Hire’s growing dependence on rental contracts with big building firms could erode its profit margins.

"They have very sensibly aligned themselves with the bigger players, but the problem is that bigger players will demand a slimmer margin," said Panmure Gordon analyst Paul Jones, who cut his profit forecast for the current financial year to 63.3 million pounds from 69.2 million pounds.

Speedy Hire reassured on debt, saying it remained "comfortably" within its 325 million pound bank facility with net borrowing of 294.7 million pounds at June 30.

Net debt is on course to finish the year below the 255.6 million pounds reported at the start of the year, Speedy Hire added.

"I am pleased to report an encouraging start to the new financial year, with strong growth being achieved across both divisions," Speedy Hire Chairman David Wallis said.

Speedy hire reports its interim results on November 28.

(Reporting by Myles Neligan)